Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
I just read this
https://www.ajbell.co.uk/articles/latestnews/266975/speedy-hire-acquires-green-power-hire-says-first-half-%E2%80%98satisfactory%E2%80%99
On balance the Greenpower purchase seems like a good move... although it will take some time before the strategic benefits appear on the bottom line.
The main concern in that article is about fuel costs.
However according to this article these concerns are unwarranted.
https://www.iata.org/en/iata-repository/pressroom/fact-sheets/fact-sheet---fuel/
Main problem imv atm is the lack of confidence in the government and this is holding back all UK equities.
The key shareholder information is in the Annual report, page 100
https://wizzair.com/en-gb/information-and-services/investor-relations/investors/annual-reports
Blackrock is not on the list so must be new to the happy band.
Shareholder Reported shareholding Reported number of shares
Indigo Hungary LP 18.3 per cent 18,950,611
Capital International Investors 8.2 per cent 8,445,166
Baillie Gifford & Co. 7.6 per cent 7,844,911
Fidelity Management & Research Company LLC 6.2 per cent 6,423,962
Indigo Maple Hill LP 5.6 per cent 5,734,284
Fidelity International 5.2 per cent 5,378,769
Capital Research Global Investors 4.2 per cent 4,386,985
Orbis Investment Management Ltd. 3.7 per cent 3,856,260
Personally I don't believe shorting does make the market drop... any more than selling you shares at a peek and hoping to buy them back later at a lower price makes it drop.
Its not the shorting or selling that causes the drop... its the lack of confidence and lack of buying that makes it drop.
However the more I learn about the markets the more I realise how much I don't know... so don't take my word for it.
Morning, yes I think I have a basic understanding of shorting. For retail investors we can use various platforms such as IG to create Spreadbets or CFDs, be they long or short. With a short position you enter a contract to deliver a number of shares at some point in the future. If the price at time of delivery (closing the short position), is lower than the price when the contract was made then you keep the difference and that’s how the profit is made.
Obviously big institutions don’t use IG, but the mechanism of entering a contract to borrow shares, sell them at todays price and deliver them later at (hopefully) a lower price is the same.
What I don’t get is why short positions are blamed for pushing the price down…
I found this article interesting.
https://www.cnbc.com/2020/03/19/stop-blaming-short-sellers-for-causing-the-market-drops.html
Hi Ozzie, If I understand you seem to assert that the shorters are driving the SP down. How does that work? Surly someone going short doesn't push the price down any more than going long pushes it up?
I know that's a pretty basic view so I'd appreciate any insight into how you see it working.
thanks, M
Ozzie,
"£13 will be not to bad for existing shareholders..." I think existing shareholders would disagree with that.
I acknowledge your point that Wizz debt is double their market valuation, but so is IAG's and their SP has not dropped 30% in 3 months... the reason Wizz is so volatile is because they don't pay divis, so the only way to make money off it is to trade it.
I see no indication of them being unable to service that debt. If you have read something can you please share a link. Or is it just your opinion?